In the last few years real estate has changed more radically than ever before. Externals in the economy such as high unemployment, a stagnant economy, lack of corporate transferees, high gasoline prices, foreclosures and short sales that never close, homes that do not appraise and buyers that do not qualify for a loan on the last day have taken a heavy toll on our industry both in rank and file membership and real estate offices and brokerages. As agents, we have become gun--shy because we are afraid of alienating those dwindling ranks of buyers and now we are afraid to ask real questions and meet them face to face. We've shied away from dialog because we are afraid of more rejection and failure.
Dialog is a lost art! The new buzz words in real estate are "Text me, go to my web, make your loan application online, see the attached file, or please electronically sign the contracts…!" However such impersonal communication and service may not be the right answer to closing more business. Erroneously, our industry has embraced the notion that Internet, social media and Blogging are the new bonding opportunities and they've replaced those 1--on--1 relationships that we employed so successfully just a short while ago. They have not! They are just tools that are being improperly used to facilitate the marketing and sales process, but they may not increase your bottom line. Perhaps they are beneficial tools for business, but they cannot replace the personal touch!
It is my observation that in the past few years new agents and brokers with short tenure in real estate began making policy changes regarding the real estate industry and interacting with the public. Their erroneous techno assumptions were based on the boom in real estate and not the norms on how we sell our services, bond with clients and close a deal. In the past, working closely with a client 1-- on 1 actually created more business. It goes without saying that if the client was a happy camper…they referred more business your way! Instead our industry seems to have overlooked these facts and we've become even more withdrawn and aloof in our dealings with the public and as a result our closed sales have dwindled to nothing.
Many real estate companies in an attempt to convert more leads into closed sales have developed impersonal websites that offer home valuations online for sellers, and offer rebates to buyers in effect making us a free information resource that requires no commitment from the public and misinformation. Real estate websites today will routinely send buyers updated listings, new listings, and price reductions to anonymous buyers as they come on the market via text messages and emails. It's a free service that offers no free information and there is no obligation to the consumer.
Everything is shared openly online. Many companies are closing fewer deals than ever as clients believe they have equal market and contract knowledge. Because there is a lack of loyalty and commitment from clients that have no reason to trust or commit to an agent or broker with whom they have never met, potential clients are making huge financial commitments at their peril. Many clients now view purchasing a home as a transaction and not as a process where trust, ethics and corporate brand matters.
Consumers assume incorrectly that they can anonymously find all the information they need to buy a home online by pooling information from many agents via text messages, property maps, tax information, find multiple listing numbers, floor plans, time on market, square footage, and ascertain estimates of value without a real estate agent personally assisting them. As a result, buyers and sellers now view all agents the same and their only loyalty (for the moment) is to the agent that returns their calls first. So how can we change this? We can be the professionals we indeed are by demonstrating those skills and years of in--the--trenches knowledge that once earned us the gravitas we deserved as REALTORS. Does a doctor, dentist, or attorney "meet" with you over the phone to assist you? Of course not!
These professionals may send you to yet another professional with a specialist such as an X--ray technologist, an orthodontist, or another expert in the field just as we may refer a client to loan officers, attorneys, or inspectors. We must return to face--to--face meetings which will allow you to share your knowledge, real estate experience, insights and strategies! My advice for winning over a potential client starts with having your first meeting at your office…on your turf!
Some Suggestions:
Agent Appearance: Real estate dress has become far too causal in the last few years. While we all prefer to be comfortable, strike a balance and while dressing for the season, respect your client and don't show up looking like you just don't care. Don't start cleaning out a messy car while your clients wait.
Schedule Meetings: Bond with would--be clients with the use of conferences or meetings to explain the home buying and selling process, contracts, financing and the ABC's of agency. It is an opportunity to sell yourself and abilities.
Forget Meeting Clients at Starbucks: Cafes are too noisy, there's a total lack of privacy, there are too many distractions and it is not the place to conduct business.
Have the Buyers Ride with You: there's no better place to bond with a client than by riding in your car en route to the homes they've chosen. That will afford you an opportunity to learn more about your clients as they begin to respect your market knowledge.
Insist on Signed Agency: Do not show homes to buyers that will not commit to you in writing. Explain agency to them thoroughly, and advise them that you are a real estate professional running a business. It should be written office policy and in many states it the law.
Qualify the Client: Are they realistic, do they have the financial ability to consummate the deal or are they dreaming? If they are paying cash, they need to provide proof of funds in writing on letterhead from their financial institution signed by someone in authority with their phone number and other contact information. Otherwise, they can verify their ability to purchase a home or real estate with a loan officer or banker before showing them any homes. It is an opportunity to take the lead with your clients as a "can--do professional" and the exercise will build up their trust in you.
Phone Calls & Follow Up!: More deals are lost in real estate from poor agent follow up. Call your clients on a regular basis. Once you feel you know them, then it is time to meet them and review their real estate needs or possible matches.
Do Not Be Afraid of Rejection: Share your experience with only those clients that appreciate your personal service and are willing to commit to working with you exclusively.
Published: September 26, 2012
Use of this article without permission is a violation of federal copyright laws.